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Break Even

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Old 08-01-2003, 07:14 AM
httpCORE httpCORE is offline
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Break Even

How long did it take you to break even?

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Old 08-01-2003, 08:08 AM
abang abang is offline
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10 weeks.

Old 08-01-2003, 10:28 AM
Dedicatedone Dedicatedone is offline
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Depends what business you're in. If you're in gamehosting it can take a long time because you're always buying new dedicated servers and paying more setup fees. If you're a webhost then it shouldn't take you long to break even, maybe about 2 months or so.

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Old 08-01-2003, 10:40 AM
beachtrader beachtrader is offline
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6 weeks to profitibility before taxes.

It will really depend what your market niche is though. If you are looking for super cheap customers or quality driven business clients you will have different break even time. Also it really depends on what your costs are and what advertising (if any) you are doing.

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Old 08-01-2003, 11:06 AM
THW-Dave THW-Dave is offline
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Depends if you colocate, rent a dedicated server, or have a inhouse connection, also.

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Old 08-01-2003, 11:11 AM
cyberlot cyberlot is offline
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Join Date: May 2002
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The break even point isnt no fun..

how long until you where making enough to pay not only your hosting bills but your bills at home also

( Children living in there parents basement using DSL need not respond )

Old 08-01-2003, 11:21 AM
dapon dapon is offline
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Join Date: Feb 2003
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Wow , I must be doing something wrong. I just hope to break even this year. Even my business plan doesn't show a profit this year. Of course I understand tax breaks and write offs so I have planned for this.

I have made major investments in office furniture, supplies, employees, offices, ect. But according to my accountant I'm doing just fine. It's all part of owning a business.

Dale Poncy
Retired from Zana Web Hosting

Old 08-01-2003, 11:29 AM
magnafix magnafix is offline
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Join Date: Apr 2001
Location: Montana USA
Posts: 673
Break-even is elusive. Sure we recouped our colo costs years ago, so that was 'breakeven'. Oh, we need more servers. Oh, we need more bandwidth. Oh, salaries... and additional employees. More furniture and PCs. Office renovation/remodel. Headhunter fees. Increased marketing budget. And so on.

Expect your expenses to rise by a zillion percent, and hope your revenues follow.

John Masterson
Former Hosting Company Owner

Old 08-01-2003, 11:29 AM
beachtrader beachtrader is offline
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Well, take my statement with a grain of salt--the infrastructure was already in place --office, etc.

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Old 08-01-2003, 11:33 AM
SROHost SROHost is offline
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Join Date: Jan 2003
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Originally posted by dapon
Wow , I must be doing something wrong.
I doubt it.

I know that was tounge in cheek, but I think it's important to highlight the difference between the typical new host leasing a single server or reselling, and others (like you) who started with long term business plans from the beginning.

Sure, you can start with very little investment and still be sucessful, but (IMO) that tends to put way too much of your early success into "fate". Without things like backup hardware and contracts with alternate bandwidth providers, you're more likely to go under the first time you or your DC is hacked as to ever break even.

Stability, redundancy and peace of mind

Old 08-01-2003, 11:41 AM
VH-Robert VH-Robert is offline
Join Date: Dec 2002
Location: Miami, FL
Posts: 1,487
We broke even 2 months after we started. But we didn't start off with 10 servers, 5 employees, a $20,000 dollar design, etc etc.

As already mentioned, it depends on how much you invest as your startup cost and what you purchase and so on.

Old 08-01-2003, 01:11 PM
mark_uk mark_uk is offline
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Location: uk
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5 weeks.

Old 08-01-2003, 02:53 PM
Ankheg Ankheg is offline
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Join Date: Mar 2003
Location: Saint Paul, MN
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Two weeks... but that was as a low-end reseller, almost a year ago. It's grown steadily since then, to the point that I was just able to purchase what will be my first colocated hosting machine. Awww, isn't that special.

We're following our business plan, but not quite achieving expected growth - the two are very different.

Old 08-01-2003, 02:57 PM
dbbrock1 dbbrock1 is offline
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6 months. Of course it would have only been 2 months if HostCharge wouldn't have screwed me over.

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Old 08-01-2003, 03:49 PM
Pilgrim Pilgrim is offline
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Join Date: Sep 2001
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I've been at it for over two years now but break-even is not in sight. I'm guessing at least another year and a half


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